Self Employment Tax Calculator

Self Employment Tax Calculator FAQs

What is the self-employment tax?

This tax, currently at a self-employment tax rate of 15.3%, is paid by contractors, freelancers, and other self-employed individuals who receive IRS Form 1099. This tax funds two important federal programs: Medicare and Social Security. You may be able to deduct half of your self-employment tax bill on your federal income tax return, along with other business expenses and self-employment tax deductions. W-2 employee taxpayers also contribute to Social Security taxes and Medicare taxes by contributing 7.65% of their taxable income to these programs, which their employers match.

Who needs to pay self-employment tax?

Independent contractors, freelancers, sole proprietors, and other workers the IRS deems to be self-employed typically have to pay the self-employment tax. If you made $400 or more in earnings in a year, you will be considered self-employed by the IRS. If you received $600 or more for services performed for a business or entity, they will send you IRS Form 1099-NEC, Nonemployee Compensation, detailing those payments. Other 1099 forms you may receive include:

• IRS Form 1099-DIV, Dividends and Distributions
• IRS Form 1099-G, Certain Government Payments
• IRS Form 1099-INT, Interest Income
• IRS Form 1099-K (For payments received from credit, debit, and stored value cards, payment apps, and online marketplaces.)
• IRS Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.

How does the self-employment tax calculator work?

1-800Accountant’s tax calculator for self-employed individuals provides fast, simple calculations designed to help you stay tax-ready throughout the year. This calculator estimates your current tax liability based on your inputs, giving you valuable insights into your self-employed tax situation when you need them.

Does this calculator include federal and state taxes?

1-800Accountant's free tax calculator is designed to help you determine your state and federal self-employment tax burden. Simply input the required data to generate an accurate estimate throughout the tax year.

Is the calculator accurate for quarterly tax payments?

Quarterly estimated tax payments are also due on April 15, June 15, September 15, and January 15. Adhering to each deadline with accurate calculations will help you maintain compliance. While this calculator is designed to calculate your current self-employment tax burden, 1-800Accountant supports your quarterly estimated tax efforts with our free quarterly estimated tax calculator, which encourages on-time payments.

Do I still need an accountant if I use this calculator?

While this calculator will provide a helpful estimate of your current self-employment tax situation, it is not a replacement for affordable, tax-deductible accounting services, such as those offered by the CPAs, EAs, and tax professionals at 1-800Accountant. While many self-employed individuals will do their own tax preparation early on as a cost-saving measure, they should consider trusting a qualified accountant or team to address financial work as it grows in complexity.

Can this calculator help me decide between an LLC and an S Corp?

If you've just formed your business as an LLC, you have great flexibility during the first 75 days of operation to select a different entity, including an S corp. While the tax benefits of operating as either entity can overlap, both feature pass-through taxation, you should choose the most advantageous business structure for your tax situation. Review S corp eligibility requirements and submit IRS Form 2553, Election by a Small Business Corporation, to officially make the switch.

Is my information stored or shared when I use the calculator?

1-800Accountant takes your privacy seriously. We will never store or share any information you provide to this calculator internally or with our partners and affiliates. Once you've exited the calculator page, your information will no longer be accessible.

How can I get help with filing my self-employment taxes?

When handling your accounting and bookkeeping tasks becomes too tedious and time-consuming, or you get penalties for miscalculations and missed deadlines too often, it's time to talk to the experts at 1-800Accountant, America's leading virtual accounting firm. We offer a suite of affordable, tax-deductible accounting solutions tailored for modern self-employed workers, giving you peace of mind and the freedom to focus on your next business milestone while we handle the rest.